Originally posted on Finextra: Operational Risk: The Tech Solution (finextra.com)
COVID-19 has brought sound operational risk practices into focus around the world of business. Operational risk is the risk of loss from failures in internal processes. As COVID-19 disrupted our day-to-day lives, businesses closed their offices. Collaboration among employees suddenly became a challenge and those in charge of internal processes were no longer within reach. Business infrastructure moved from offices, into employees’ homes. IT security for remote working had to be upscaled. Equally, supply chains came under severe strain, as businesses shut down operations. COVID has made apparent that businesses that have embraced advanced technology have come out on top and efficiently reduced operational risk.
Good technology reduces operational risk associated with humans.
It removes dependence on people through different tools. For example, Suade’s powerful machine learning (ML) and automation solutions require minimal human input once operational. A handful of individuals are sufficient to develop the code to make the technologies scalable for compliance processes at large financial institutions. Compared to traditional software vendors, our SaaS offering includes maintenance through occasional remote access. Instead of requiring staff to go onsite to fix issues, continuous deployment enables us to roll out fixes and updates remotely. Combined with other tools, collaboration to develop and maintain the code is easy, without the need to be in the same office. Our coders collaborate remotely as efficiently as before via screen share and use secure VPNs to share progress. Businesses like Suade, unlike traditional software vendors with legacy solutions, operate remotely without disruption to the service.
Good technology reduces operational risk associated with infrastructure.
Well-established technology processes provide easy-to-use, remote access to our services. Our employees continue working from their homes without any disruption to our compliance services. In fact, technology makes it possible for the services to be provided remotely. VPNs and other secure sharing systems give our employees easy access to our systems, allowing them to continue their work without compromising security. Even defects in remote IT infrastructures are addressed through technology. Our IT managers use software to remotely control employees’ laptops. Any technical faults are addressed easily to minimise any disruption to employees’ work. Effective use of technology ensures that businesses like Suade have resilient infrastructures for remote working.
Good technology reduces operational risk associated with supply chains.
Businesses that leverage open automation, open source libraries, and continuous deployment make their supply chains more resilient. Powerful ML solutions have self-contained supply chains. Coders do not have to rely on third parties to supply new software. They use existing software to develop the ML system. Should this software fail, IT managers remotely access laptops to fix faults. Open-source software also offers an additional source of remote support. External coders access the libraries for open source software used in proprietary technology. If an issue arises, these external coders offer solutions. Through continuous deployment, updates to software are tested automatically before being deployed seamlessly. There is no need for developers to go on site to release software updates. Technology empowers businesses like Suade to offer self-contained services free from supply chains and the large costs of professional services.
Suade is evidence that working with a true RegTech reduces operational risk, above all during an extreme scenario like COVID. We have grown both our staff, global presence, and revenue during the pandemic. Our service offering has expanded, and we have onboarded new clients. Our operational risks are minimal, and our business model has proven successful during these challenging times. Thanks to technology, businesses like ours have a virtual home away from home.
In a rapidly changing world, one of the biggest operational risks is poor technology and failing to innovate. Take steps into understanding the world of RegTech and find out how partnering with Suade can reduce your operational risk - contact us today.